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Companies developing robotic technology could benefit from increased demand in the industrial, defense and services sectors.
Honeywell International Inc.
Lockheed Martin Corporation
Intuitive Surgical, Inc.
Northrop Grumman Corporation
Emerson Electric Co.
Rockwell Automation Inc.
Elbit Systems Ltd.
Science Applications International Corporation
Brooks Automation, Inc.
Oceaneering International, Inc.
Hollysys Automation Technologies Ltd.
Mazor Robotics Ltd.
General Dynamics' (GD) Aerospace segment revenues in the third quarter of 2019 are likely to have benefited from increased G500 aircraft deliveries.
Production cuts and lower delivery volumes of Boeing's (BA) 737 might have weighed on its commercial business performance in the third quarter of 2019.
iRobot's (IRBT) third-quarter 2019 earnings might reflect adverse impacts of high tariffs, manufacturing diversification, promotional and pricing activities, and product launches.
CACI International's (CACI) expertise in electronic warfare reprogramming capabilities is expected to support U.S. Army in various military operations.
Every investor in Intuitive Surgical, Inc. (NASDAQ:ISRG) should be aware of the most powerful shareholder groups...
Investing.com - Intuitive Surgical (NASDAQ:ISRG) reported third quarter earnings that beat analysts' expectations on Thursday and revenue that topped forecasts.
Solid deliveries might have aided Lockheed Martin (LMT) in the third quarter. However, poor operating profit performance is likely to have an adverse impact.
Performance of Teradyne's (TER) new products & contribution from Universal Robots are likely to have been impressive in Q3. Yet, weakness in a few end-markets served might get reflected in its results.
Northrop Grumman (NOC) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Housing Starts and Building Permits, a fresh Philly Fed survey and, of course, new Initial and Continuing Jobless Claims add to new Q3 earnings data.
Textron's (TXT) manufacturing revenues grow 1.9% to $3,245 million in third-quarter 2019, while revenues at the Finance division increase 6.7% to $14 million.
Impressive traction in its aerospace and process solutions businesses and solid demand for commercial fire products drive Honeywell's (HON) Q3 results.
(Bloomberg Opinion) -- Honeywell International Inc.’s aerospace halo is worth its weight in jet fuel.The $120 billion conglomerate reported its third-quarter results on Thursday, and while there was evidence of the slowdown gripping the rest of the manufacturing industry, there was also proof that everything that’s made Honeywell an industrial darling of Wall Street this past year still holds true. On the one hand, Honeywell cut its 2019 sales outlook. Revenue at its safety and productivity unit slumped 8% in the third quarter, excluding the impact of currency swings and M&A, as inventory piled up and projects got pushed out. Offsetting that bleak result was Honeywell’s aerospace division, which delivered robust 10% organic revenue growth. And Honeywell raised its 2019 earnings forecast.So in the end, what could have been an ugly earnings day for Honeywell ended up eliciting a polite clap. As trading began in New York, the stock was up about 1%.For Honeywell and other industrial companies, aerospace has been a rare bright spot at a time when many other sectors, particularly automotive, electronics and increasingly construction-related businesses, are slowing down. The decline appears to be accelerating: railroad Union Pacific Corp. on Thursday reported an 8% slump in carload volumes in the third quarter while construction-rental equipment company United Rentals Inc. trimmed its revenue guidance late Wednesday. Meanwhile, a report from the Federal Reserve on Thursday showed that U.S. factory output declined in September by the most in five months as a strike at General Motors Co., the trade war and generally sluggish demand weighed on production.The sustainability of the years-long aerospace boom has come into question as a wobbling Chinese economy and the prolonged trade war risk damping demand for travel. Global passenger traffic grew 3.8% in August, well off the pace of the past few years, according to the International Air Transport Association. But that’s still growth, at least for now. Parts makers like Honeywell are also seeing more demand for services on older aircraft while the Boeing Co. 737 Max remains grounded.In its earnings presentation, Honeywell said it expects further growth in commercial flight hours and the rollout of new jet programs to continue to boost sales at the aerospace division in 2020. Margins may get squeezed, because the business will tilt more heavily toward the less profitable work of installing new equipment versus maintaining older versions.The generally upbeat aerospace narrative contrasts with downbeat performances elsewhere at the company. The sales decline at the safety and productivity unit was the worst for the business since 2016, when the manufacturing sector was emerging from a mini-recession sparked by the plunge in oil prices. Margins in the safety and productivity business fell 320 basis points to 13.4%. Honeywell still recorded healthy growth in its chemicals and materials unit and building-technologies division, but the pace slackened from the second quarter. Honeywell now expects total company organic sales to grow at best 5% this year, down from an earlier projection of as much as 6%.Amid what it deemed an “uncertain macro environment,” Honeywell reiterated its ability to protect its earnings through a downturn by continuing to cut costs and using its ample balance sheet for M&A and share buybacks. CEO Darius Adamczyk has largely sat comfortably on the M&A sidelines the past few years, holding out for lower valuations that may now be coming. There had been some concern when he took over from former leader Dave Cote and talked passionately about accelerating Honeywell’s revenue growth that such an effort would come at the expense of the company’s almost religious commitment to margin improvements. That concern was ill-founded. Honeywell boosted its margin guidance for the full year in part because of the benefits of previously funded restructuring, operating improvements and the spinoffs of the less profitable Garrett Motion Inc. turbocharger and Resideo Technologies Inc. consumer-facing home products businesses last year.Honeywell is making a good case for why it’s a decent place to hide in the event of a manufacturing slowdown, or perhaps broader recession. But the fact that it’s making this argument increasingly loudly should be a warning for the rest of the industrial sector.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Several residential builders have stopped buying and installing Google’s Nest devices after the internet giant overhauled how Nest technology works with other gadgets.The Alphabet Inc. unit bought Nest in 2014 for $3.2 billion to enter the so-called smart-home market. Nest has become one of the largest makers of internet-connected thermostats, smoke alarms and locks.The devices were popular with builders who saw a Nest gadget as a way to increase the value of properties. But earlier this year, that began to change as Google exerted more control over Nest and started changing the underlying technology.As a more independent business, Nest developed software that helped its gadgets communicate with a wide range of products from other manufacturers, through accounts set up directly by users.As of the end of August this year, however, consumers need a Google account -- and access to the company’s voice-based Google Assistant service -- to integrate new Nest products with other devices in their homes.The move may help the internet giant weave its Google Assistant deeper into people’s lives. But for builders it’s just a pain because Nest devices no longer work so well with the other gadgets they install in homes, such as audio and entertainment systems, and alarms and other security gear. It’s also a less enticing user proposition with all the privacy permissions that Google Assistant requires.That’s spurred some builders -- who collectively purchase tens of thousands of Nest devices each year -- to avoid Nest products.“We’ve stopped,” said Mark Zikra, vice president of technology at CA Ventures, which builds and operates apartments, senior homes and other property. “In an apartment complex we’re talking about 200, 300 devices that would be installed in one swoop and then all of a sudden everyone moves in. We don’t have the luxury of being able to say ‘hey are you a Google person or are you a Honeywell person?’”Similar sentiments were shared by others in the construction industry, including two large systems-integration firms that work with hundreds of builders across the U.S.For Sean Weiner, chief technology officer of Bravas Group, the main sticking point is Google’s decision to tie its digital assistant to Nest products going forward. Bravas installs smart-home devices and audio systems in about 3,500 high-end homes a year, and the ability to connect to as many different gadgets as possible is the most important feature. Digital assistants can’t handle these larger, more complex systems, according to Weiner.“If we put that control in the hands of Google, we’ve lost that control,” he said.This could dent Nest sales at a time when Google is trying to generate more revenue from consumer hardware. Commercial installers and builders are an important source of smart-home sales and Nest had developed a program to train professionals how to hook up its gadgets.Google has said it is being more selective with outside partners to increase security and privacy. At an event this week in New York City, the company highlighted how its home devices and smartphones work together to provide functionality that consumers can’t get unless they go all-in with Google technology. Still, the company is working to increase the number of other devices Nest products work with.That’s little comfort for builders in the midst of existing projects, such as David Berman who has been installing electronics in homes since the 1960s. Now, his company sets up networks of smart-home devices in thousands of homes a year. When Google said Nest’s integration technology was changing earlier this year, he stopped using the devices.“We were more or less forced into the switch,” he said. “When people buy a connected device, they expect it to connect. That’s not something that happens with Nest anymore.”Google isn’t alone in trying to tie its devices to a digital assistant. Amazon.com Inc. and Apple Inc. have pursued similar goals, and the smart-home market increasingly revolves around the tech giants, with manufacturers of light bulbs, thermostats, smoke alarms and more struggling to make their wares compatible with all three.Even though Nest has been owned by Google for five years, it hadn’t been fully pulled into the internet giant’s orbit until now.When Google announced the acquisition in 2014, Nest said it would only share user data with its own products and services, not Google’s. In a blog post, Nest co-founder Matt Rogers said “Nest data will stay with Nest” and that the company wasn’t changing its Terms of Service.It didn’t take long for that to change. And Rogers’s blog post is no longer available on Nest’s website. Less than six months after the deal, Nest said Google would connect some of its apps, letting Google know whether Nest users were at home or not. The integration allowed those people to set the temperature of their homes with voice commands and helped Google’s digital assistant set the temperature automatically when it detected the people were returning home.Initially, smart-home products connected to “home hubs” that acted as a gateway linking many devices -- even if they used different communication standards and protocols. “That idea has mostly died” as tech giants take over that central role with their voice assistants and smart speakers, said Frank Gillett, an analyst at Forrester Research.“This is a symptom of a larger challenge in the smart-home arena,” he added.Interoperability doesn’t need to be compromised for security and privacy, said Aaron Emigh, chief executive officer of Brilliant Home Technology Inc., which makes a centralized hub that hosts Amazon’s Alexa voice assistant.Amazon put Brilliant through many tests, ranging from audio quality to the ability to stop hacks. The same hasn’t happened with Google, he said. Google devices, such as its Home smart speakers, can be used to control Brilliant’s hub with your voice, but the integration is incomplete compared with Alexa, Emigh added.“What they’re doing is creating a lot of mistrust around Google and that’s then causing people to de-select Google and Nest as technology platforms,” Emigh said. “That’s happening in droves.”\--With assistance from Mark Bergen.To contact the reporter on this story: Gerrit De Vynck in New York at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com - U.S. futures were higher on Thursday after the European Union and U.K. announced they had reached a deal on Brexit, dispelling fears of a disorderly and economically damaging rupture at the end of the month.
Investing.com - Honeywell reported third quarter earnings that beat analysts' expectations on Thursday and revenue that fell short of forecasts.